IRS Repayment Plans Policy

Delinquent: Evidence of lien or collection filed by the IRS, as evidenced on title, tax transcripts, paystubs, asset statements or any other documentation obtained. 

FHA 

For Deliquent taxes: An approved IRS Installment Agreement w/terms of repayment. If assets indicate any payment to the IRS, evidence of approved installment agreement MUST be documented. 

Must have made last 3 months timely pmts. Cannot prepay schedule payments. 

Non-Deliquent: If approved IRS Installment agreement is not available, there's no evidence of collection/lien AND assets do not indicate payments, 5% of the outstanding balance must be applied to the DTI. 

FANNIE 

For Deliquent taxes: An approved IRS Installment Agreement w/terms of repayment If assets indicate any payment to the IRS, evidence of approved installment agreement MUST be documented. 

Must have made last 1 month of timely pmts. Cannot prepay schedule payments. 

Non-Deliquent: If approved IRS Installment agreement is not available, there's no evidence of collection/lien AND assets do not indicate payments, 1% of the outstanding balance must be applied to the DTI. 

FREDDIE

Past Due Federal Taxes- Prior years AND 2025 after April 15^th : An approved IRS Installment Agreement with terms of repayment and evidence borrowers are current on plan documented via most recent payment reminder reflecting last payment amount and date & next payment amt owed and due date. 

At least one payment must have been made prior to closing. Cannot prepay schedule payments. 

If an approved IRS Installment agreement is not available for past due taxes: A copy of the application for the installment agreement reflecting the amount of taxes owed and requested payment terms must be included in the Mortgage file. 

2025 Prior to April 15^th: an approved IRS Installment agreement is not available, there's no evidence of delinquency AND assets do not indicate payments, 1% of the outstanding balance must be applied to the DTI.

VA

For Deliquent taxes: An approved IRS Installment Agreement with terms of repayment. 

Must have made past 12 months paid as agreed. 

USDA

For Deliquent taxes: USDA considers federal taxes due by the filing date, otherwise if not paid in full taxpayers are determined to be delinquent. An approved IRS Installment Agreement with terms of repayment and evidence borrowers are current on plan documented via most recent payment reminder reflecting last payment amount and date & next payment amount owed and due date.

A minimum of 3 payments must have been made prior to closing.

Filing Extension: 

IRS extension does not grant the applicant additional time to pay taxes due. 

If the taxpayer has a history of owing taxes on previous years, then an estimated payment must be made to the IRS by the specified deadline.

If the taxpayer has a history of receiving a refund on previous years, then the taxpayer remains eligible with no estimated tax payment due.